PREMIER ENERGY AND
WATER TRUST PLC
2014

Half Year Report
for the six months
to 30 June 2014

Investment Objectives

The Company's investment objectives are to achieve a high income and to realise
long term growth in the capital value of its portfolio. The Company will seek
to achieve these objectives by investing principally in the equity and
equity-related securities of companies operating primarily in the energy and
water sectors, as well as other infrastructure investments.

Contents

Investment Objectives                                                         1

Company Highlights                                                          2-3

Chairman's Statement                                                        4-5

Investment Manager's Report                                                 6-8

Ten Largest Holdings                                                          9

Income Statement                                                          10-11

Balance Sheet                                                                12

Reconciliation of Movements in                                               13
Shareholders' Funds

Cashflow Statement                                                           14

Reconciliation of Net Cashflow

to Movements in Net Debt                                                     14

Notes to the Half Year Report                                             15-17

Interim Management Report                                                    18

Shareholder Information                                                      19

Directors and Advisers                                                       20


Company Highlights

for the six months to 30 June 2014

                                        Six months to                Year ended
                                              30 June               31 December
                                                 2014                      2013

Total Return Performance

Total Assets Total Return                       12.6%                     24.5%
1

FTSE All-World Utilities                        12.4%                      9.0%
Index Total Return (GBP) 2

FTSE All-World Index Total                       3.1%                     20.8%
Return (GBP) 2

FTSE All-Share Index Total                       1.6%                     20.8%
Return (GBP) 2

Ongoing charges 3                                1.6%                      1.4%


                          Six months to          Year ended
                                30 June         31 December
                                   2014                2013            % change

Ordinary Share
Returns

Net Asset Value per             202.05p             167.55p               20.6%
Ordinary share (cum
income) 4

Mid-market price                185.00p             157.25p               17.6%
per Ordinary share 

Discount                         (8.4%)              (6.1%)

Net Asset Value                   26.8%               58.5%
Total Return 5

Share Price Total                 23.0%               71.8%
Return 2


                          Six months to       Six months to
                                30 June             30 June
                                   2014                2013            % change

Returns and
Dividends

Revenue Return per                6.90p               7.74p             (10.9%)
Ordinary share

Net Dividends                     5.30p               4.35p               21.8%
declared per
Ordinary share 6


                          Six months to          Year ended
                                30 June         31 December
                                   2014                2013            % change

Zero Dividend
Preference Share
Returns

Net Asset Value per             201.65p             195.42p                3.2%
Zero Dividend
Preference share 4

Mid-market price                210.88p             206.00p                2.4%
per Zero Dividend
Preference share

Premium                            4.6%                5.4%


                                                                          As at
                                                                        30 June
                                                                           2014

Hurdle Rates

Ordinary shares

Hurdle rate to return the share price
of 185.0p

at 30 June 2014 7                                                          2.9%

Zero Dividend Preference shares

Hurdle rate to return the redemption
entitlement

of 221.78p at 31 December 2015 7                                        (25.8%)


                          Six months to          Year ended
                                30 June         31 December
                                   2014                2013            % change

Balance Sheet

Gross Assets less                £77.2m              £70.0m               10.3%
Current Liabilities

Zero Dividend                  (£42.8m)            (£41.5m)                3.1%
Preference shares

Equity                           £34.4m              £28.5m               20.7%
shareholders' funds

Gearing on Ordinary               2.24x               2.46x
shares 8

Zero Dividend                     1.55x               1.42x
Preference share
cover 9

1 Based on opening and closing total assets plus dividends marked "ex-dividend"
within the period. Source: Premier Fund Managers Limited.

2 Source: Bloomberg.

3 Ongoing charges have been based on the Company's management fees and other
operating expenses as a percentage of average gross assets less current
liabilities over the year.

4 Articles of Association basis.

5 Based on opening and closing NAVs plus dividends marked "ex-dividend" within
the period. Source: Premier Fund Managers Limited.

6 In 2013 the Company commenced a policy of reducing the revenue reserve by the
distribution of additional dividends of 0.75p per quarter. The six months to 30
June 2013 included one such payment, while the six months to June 2014 included
two payments. Excluding additional dividends the percentage change in dividends
declared was 5.6%.

7 Source: JP Morgan Cazenove.

8 Based on gross assets less current liabilities divided by equity
shareholders' funds at the end of each year.

9 Non-cumulative cover = gross assets at year end less estimated wind up costs
less management charges to capital divided by final repayment value of ZDP's.
Source: JP Morgan Cazenove and Premier Fund Managers Limited.


Chairman's Statement

for the six months to 30 June 2014

Performance

Following on from the strong gains recorded in 2013, I am pleased to report
that the Premier Energy & Water Trust ("PEWT") has enjoyed an encouraging start
to 2014. The first half of the year has seen further strength in the portfolio,
partially offset by an increase in the value of Sterling.

Over the six months to June 2014, PEWT's gross assets delivered a total return
of 12.6%, being marginally ahead of the FTSE All-World Utilities Index which
recorded a total return of 12.4%, and well ahead of the equity market
generally, the FTSE All-World Index returning just 3.1% (all indices stated as
total return, adjusted into Sterling). Pleasingly, the trend of
under-performance by the utilities sector, which was discussed in the
Investment Manager's Report in the 2013 Annual Report and Accounts, appears to
have been broken.

The growth in assets has been to the benefit of both classes of share. PEWT's
Ordinary Share has seen an increase in NAV (excluding income) of 20.6%,
benefiting from the Company's geared capital structure. Based on the Ordinary
Share price, and including dividends, Ordinary Shareholders saw a total return
on their investment of 23.0%.

Likewise, the cover on the Zero Dividend Preference Shares (being the amount by
which the ZDP Shares' final entitlements are covered by the portfolio)
increased from 1.42x at December 2013 to 1.55x at June 2014. The ZDP Share
increased in price by 2.4% over the period, and at the end of June traded on a
yield to their 221.78p maturity value, of 3.4%.

Overview of the period

Global equity markets paused for breath in the first half of 2014. The
well-known economic issues, which markets appear to be learning to live with,
have been joined by war in Iraq, and a resurgent Russia annexing Crimea. While
PEWT has no direct exposure to these locations, implications for energy prices
arising from these events are an issue.

A combination of factors led to utilities out-performing equity markets. These
can be summarised as, firstly, a realisation that in many places interest rates
will stay low for longer than originally expected, and that reliable yield is
to be valued. Secondly, the myriad of conflicts and political disputes has
encouraged investors to seek out sectors perceived as offering a measure of
safety. Thirdly, the sector's under-performance since 2009 left it offering
excellent relative value by the end of 2013.

Those utilities that performed best tended therefore to be located in safe
haven developed markets with low interest rate expectations. In Europe the Euro
Stoxx 600 Utilities Index delivered 14.4%, and in the US the S&P 500 Utilities
Index returned 14.9%. Emerging markets lagged slightly, the MSCI EM Utilities
Index gaining 10.0%. The UK sector remained weighed down by political concerns
and returned only 8.2% (all indices stated as total return, adjusted into
Sterling).

Dividends

On 8 May 2014 the Company announced the first quarterly dividend of 2.65p per
Ordinary share, comprising a base dividend of 1.9p, (an 11.8% increase when
compared to the 1.7p per Ordinary share paid in the equivalent period in 2013)
and an additional dividend of 0.75p per Ordinary share in accordance with the
policy announced in August 2013 to run down the Company's revenue reserve, paid
on 30 June 2014.

On 24 July 2014 the Board declared a second interim dividend for the year
ending 31 December 2014 of 2.65p per Ordinary share comprised of a base
dividend of 1.9p and an additional dividend of. 0.75p. This second interim
dividend will be paid on 30 September 2014 to members on the register at the
close of business on 29 August 2014. The Ordinary shares will be marked
ex-dividend on 27 August 2014.

In common with all other UK based Global equity investment funds, the strength
of Sterling will inevitably be to the detriment of the level of income
generated by the portfolio when translated back into Sterling. However, it is
expected that incremental dividend growth at stock specific level, plus the
fact that some of the more recent investments are paying higher than average
income, should ensure that income generation remains robust.

Alternative Investment Fund Managers Directive (AIFMD)

The Company has been entered into the register of small registered UK
Alternative Investment Fund Managers (AIFMs) for the purpose of complying with
the Alternative Investment Fund Managers Regulations 2013 (AIFMRs). If the
Company breaches the €100 million threshold for eligibility to register as a
small registered UK AIFM the directors have agreed to appoint Premier Portfolio
Managers Limited (PPM) as its AIFM. PPM is a company in the same group as the
Company's manager, Premier Fund Managers Ltd.

Reorganisation of capital structure and extension of life

On 25 July 2014 the Company announced proposals, recommended by the Board, to
extend its life and to implement a reorganisation through a scheme of
arrangement under Part 26 of the Companies Act 2006. Full details of the
proposals are contained within a circular published on 1 August 2014. In
summary the proposals envisage replacing the ZDP Shares with new ZDP Shares
issued by a newly incorporated subsidiary of the Company, whilst at the same
time maintaining the economic rights of the ZDP shares including the
entitlement to a capital payment of 221.78p on 31 December 2015.

Secondly, it is proposed to amend the Articles to allow the Company to continue
without a fixed life whilst including a provision to allow holders of ordinary
shares an opportunity to vote on the continued existence of the Company every
five years from 2020. Lastly, it is proposed to renew the Board's authority to
issue new ordinary shares in the Company on a non pre-emptive basis, subject to
certain parameters, to replace the authorities granted by Shareholders at the
Company's annual general meeting held in May 2014.

Outlook

After a period of unusually low volatility and steadily rising equity markets,
commentary is increasingly focusing on equity valuation, mainly as a result of
this strength. However, having missed out on much of the equity market
performance, we feel that the global utility sector continues to offer
attractive value, and that PEWT's portfolio is positioned to capture not only
further sector performance, but also contains a number of specific situations
that we expect to generate value irrespective of market movements. The strength
of sterling remains a significant challenge both for asset and income growth
given the overseas weighting of the portfolio, but your board is confident
that, despite currency movements, our positioning is suited to long term
performance.

Geoffrey Burns
Chairman
6 August 2014


Investment Manager's Report

for the six months to 30 June 2014

Market review

The first 6 months of 2014 has for the first time since 2007, seen the
utilities sector outperform the wider equity market. This was the case
globally, and even the somewhat challenged UK utilities sector was well ahead
of its parent index.

The Chairman's statement in the 2013 Annual Report mentioned several
fundamental factors which should give encouragement to utility investors, such
as improved balance sheets, increased efficiencies and falling prices of
primary energy such as coal. While these internal factors remain important,
they are undoubtedly long term in nature, and do not sufficiently explain the
notable turnaround in the sector's fortunes so far this year.

More importantly for 2014, several external factors as highlighted in the
Chairman's statement, have played a perhaps more important role. These are
interest rates, global risk, and valuation.

The first half of 2014 has seen a continued reduction in market interest rates,
reflecting the deflationary forces still present in the global economy despite
unprecedented levels of money creation from central banks. Bond yields have
fallen indiscriminately, including in those locations which might be considered
higher risk such as Southern Europe. Many market participants see the utility
sector as being something of a bond proxy, and the sector has therefore
benefited from falling yields.

While we can see the short term logic of this, we would highlight that for the
utility sector, interest rates are mainly a pass through cost over time, and
this is usually explicitly built into regulatory formulae for the regulated end
of the sector. Therefore a permanent reduction in interest rates would, all
else equal, lead to a reduction in allowed returns and earnings over time,
offsetting the interest rate effect.

For this reason it is common, we believe, for the market to over-state the
effect that changes in interest rates have on the sector, and investors often
tell us that they are concerned that the sector would fall in value should
interest rates rise. We do not believe that there is any need to be overly
concerned. In fact the utility sector trades at higher yields now than it did
10 years ago, despite interest rates having tumbled over that period.

Portfolio

The first half of 2014 has seen excellent performances from some of PEWT's
larger holdings. The greatest gains have been seen in Indian power generator
OPG Power, which has remained as the Company's largest holding. OPG's share
price rose 75.0% over the six months as the market gained in confidence over
its ability to deliver on its investment plan. Two new power stations are due
to be commissioned in the second half of 2014, and should lead to a step change
in earnings and value.

Fortune Oil's share price gained 29.6%, an impressive performance. However the
value of its associate company, China Gas Holdings Limited, which makes up the
vast bulk of Fortune's value, gained in price by 41.1% over the six months.
Therefore the valuation discount at which Fortune trades actually widened in
the period, despite the strong performance.

We substantially increased PEWT's holding in Renewable Energy Generation
Limited ("REG") in the first half, with REG becoming PEWT's second largest
position. We believe the shares are materially undervalued, becoming even more
so given that the share price fell by 8.4% over the six months. We await
further news on planning applications for the company's wind farm business, and
are encouraged by the approval in June to build a relatively large new
development in Cumbria.

During the six months we changed the emphasis of PEWT's Chinese holdings. At
December 2013 the three largest Chinese positions were China Everbright
International, a waste to energy company, China Suntien Green Energy, a gas
distribution and wind farm company, and Kunlun Energy, a gas infrastructure
company. Together these represented 15.4% of PEWT's portfolio at the end of
2013. The first two of these performed exceptionally well during 2013, and we
reduced these positions in early 2014 on valuation grounds. We have scaled back
Kunlun as we expect its growth plans to be realised over a longer period than
we originally anticipated.

The proceeds from these sales have been largely reinvested into the Chinese
thermal generation sector, with two new entries to the ten largest holdings,
Huaneng Power and China Power International. These investments performed well
during the period, rising 24.8% and 10.9% respectively during the period. The
expansion of Chinese coal mines over many years is now leading to a surplus of
coal as GDP growth slows. This has resulted in expanding margins and earnings
for the generators as their costs fall. At one quarter of the portfolio, China
remains PEWT's largest geographic exposure.

Continental Europe performed well, with the share price of PEWT's largest
European investment, GDF Suez, gaining 17.6%. GDF has now largely completed its
disposal and deleveraging programme, and with the balance sheet looking
healthier, has moved back onto a growth footing, albeit mainly organic rather
than through acquisition. This strength came despite the company announcing a
substantial rebasing of its dividend.

The UK remains susceptible to political populism as we move towards the
scheduled 2015 general election. However the referral of the energy sector to
the Competition and Markets Authority is to be welcomed, and will hopefully
depoliticise the situation. Our decision to retain SSE as PEWT's largest UK
position was vindicated with a share price gain of 14.4%, well ahead of the UK
utility sector. Furthermore the decision to exit Centrica in late 2013 was
proved correct, with Centrica's shares falling by 10.1% over the six months.

PEWT's Latin American investments generally performed well. The largest holding
in this area, Enersis, operates across the continent, and recorded an 18.5%
gain in its share price over the half year.

Lastly, we would also mention the Essar Energy Convertible Bonds which were
sold in the period, realising a USD capital gain of 61.6% on purchase cost. As
a result of the takeover of Essar Energy PLC by majority shareholder Essar
Global, the bonds became "puttable" back to the company, PEWT selling out early
marginally below face value. The bonds had also been a strong contributor to
income, the annual coupon being a 7.0% yield on the book cost.

GEOGRAPHIC ALLOCATION 2014

                                        30 June 2014          31 December 2013

China                                          22.4%                     28.1%

Asia (ex. China)                               17.2%                     15.9%

United Kingdom                                 16.4%                     15.4%

Latin America                                  12.4%                      9.1%

Global                                          9.1%                      7.4%

North America                                   9.0%                      7.6%

Europe (excluding UK)                           6.6%                     10.2%

Eastern Europe                                  3.0%                      2.3%

Middle East                                     2.6%                      3.1%

Australasia                                     1.3%                      0.9%

SECTOR ALLOCATION 2014

30 June 2014

                                        30 June 2014          31 December 2013

Electricity                                    51.6%                     44.5%

Multi Utilities                                20.3%                     20.8%

Renewable Energy                               11.4%                      7.7%

Gas                                             8.5%                     12.7%

Water & Waste                                   8.2%                     13.7%

Infrastructure                                  0.0%                      0.6%


Currency

Probably the largest single detractor from performance in the period was the
strength of the Pound. Sterling rose by a further 3.3% against the US Dollar
during the course of the first half of 2014, having strengthened by 1.9% over
2013. Aside from direct US investments, PEWT's portfolio is also exposed to
this through the Chinese companies listed in Hong Kong, with the HK Dollar
being pegged to the US Dollar. Sterling also rose by 3.8% against the Euro.
PEWT remains unhedged against currency movements.

Balance sheet

We are pleased to report that, as a result of the strong investment performance
of the past six months, the effective gearing on the ordinary shares has
continued to fall from 2.46x at December 2013 to a slightly more comfortable
2.24x at June 2014. However, markets permitting, we would still hope to bring
this level down further over the remainder of 2014. At the end of June, PEWT's
Ordinary Shares represented £34.4 million out of the total gross assets of £
77.2 million.

The ZDP Shares also find themselves in a better position with higher asset
cover as detailed in the Chairman's Statement, and as such continued to trade
at a premium to accrued asset value.

Outlook

There was general strength in the portfolio during the first half of 2014
largely caused by macro factors. However we still believe that the sector
stands up well against wider markets in terms of both prospects and valuation.

Investors will be aware that in addition to the larger mature utilities, PEWT
holds several smaller "special situations" such as OPG and Fortune Oil. The
Essar Energy Convertible Bonds also fell into this category. This was a strong
period for returns from these investments, but we remain convinced that the
majority of their value is yet to be realised.

James Smith
Claire Long
Premier Fund Managers Limited
6 August 2014


Investment Manager's Report

for the six months to 30 June 2014

Ten Largest Holdings

at 30 June 2014

                                    Value      % total        June     December
Company/Activity  Country            £000  investments        2014         2013

OPG Power
Ventures

Electricity       India             7,437         9.8%           1            1
Generation

Renewable Energy
Generation

Renewable Energy  UK                4,614         6.1%           2           19

Fortune Oil

Gas Distribution  China             3,288         4.3%           3            8

Huaneng Power
International

Electricity       China             2,895         3.8%           4           44
Generation

China Power
International

Electricity       China             2,785         3.7%           5           16
Generation

Ecofin Water &
Power*

Investment        UK                2,650         3.5%           6            6
Company

SSE

Multi Utility     UK                2,617         3.4%           7            7

GDF Suez

Multi Utility     France            2,576         3.4%           8            9

China Suntien
Green Energy

Renewable Energy  China             2,405         3.2%           9            3

Enersis

Electricity       Chile             2,373         3.1%          10           11
Integrated

                                   33,640        44.3%

Other investments                  42,224        55.7%

Total investments                  75,864       100.0%

* Holding in convertible bonds


Income Statement

for the six months to 30 June 2014

                   (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) (Audited) (Audited)

                   Six months  Six months  Six months  Six months  Six months  Six months  Year      Year      Year
                   to 30 June  to 30 June  to 30 June  to 30 June  to 30 June  to 30 June  ended 31  ended 31  ended 31
                   2014        2014        2014        2013        2013        2013        December  December  December
                                                                                           2013      2013      2013

                   Revenue     Capital     Total       Revenue     Capital     Total       Revenue   Capital   Total

             Notes £000        £000        £000        £000        £000        £000        £000      £000      £000

Gains on
investments
held at fair
value

through            -           7,604       7,604       -           9,703       9,703       -         12,306    12,306
profit or
loss

Revenue            1,740       -           1,740       1,708       -           1,708       2,719     -         2,719

Investment         (148)       (226)       (374)       (132)       (198)       (330)       (268)     (398)     (666)
management
fee

Other              (278)       -           (278)       (176)       -           (176)       (375)     -         (375)
expenses

Return
before
finance
costs

and taxation       1,314       7,378       8,692       1,400       9,505       10,905      2,076     11,908    13,984

Finance            -           (1,284)     (1,284)     -           (1,192)     (1,192)     -         (2,471)   (2,471)
costs

Return on
ordinary
activities

before             1,314       6,094       7,408       1,400       8,313       9,713       2,076     9,437     11,513
taxation

Taxation on        (137)       -           (137)       (78)        -           (78)        (155)     -         (155)
ordinary
activities

Return on
ordinary
activities

after
taxation
attributable

to equity          1,177       6,094       7,271       1,322       8,313       9,635       1,921     9,437     11,358
shares

Return per
Ordinary
share
(pence)

- basic      4     6.90        35.70       42.60       7.74        48.71       56.45       11.25     55.29     66.54

The total column of this statement is the profit and loss account of the
Company.

All revenue and capital items in the above statement derive from continuing
operations.

The supplementary revenue and capital columns are both prepared under guidance
published by the Association of Investment Companies.

A Statement of Total Recognised Gains and Losses is not required as all gains
and losses of the Company have been reflected in the above statement.


Balance Sheet

as at 30 June 2014

                            (Unaudited)         (Unaudited)           (Audited)
                                30 June             30 June         31 December
                                   2014                2013                2013

                                   £000                £000                £000

Non current assets

Investments at fair              75,864              66,650              68,369
value through the
profit or loss

Current assets

Debtors                             484                 933                 258

Cash at bank                      1,286                 834               1,529

                                  1,770               1,767               1,787

Current liabilities

Creditors: amounts                (438)               (525)               (167)
falling due within
one year

Net current assets                1,332               1,242               1,620

Total assets less                77,196              67,892              69,989
current liabilities

Creditors: amounts
falling due after
more than one year

Zero Dividend                  (42,820)            (40,257)            (41,536)
Preference shares

Total net assets                 34,376              27,635              28,453

Capital and
reserves

Share capital                       171                 171                 171

Share premium                     6,884               6,884               6,884

Redemption reserve                   88                  88                  88

Capital reserve                  17,533              10,315              11,439

Special reserve                   7,472               7,472               7,472

Revenue reserve                   2,228               2,705               2,399

Total equity                     34,376              27,635              28,453
shareholders' funds

Net asset value per
Ordinary share
(pence)

- UK Accounting                  201.41              161.91              166.70
Standards basis

Net asset value per
Ordinary share
(pence)

- Articles of                    202.05              162.95              167.55
Association basis


Reconciliation of Movements in Shareholders' Funds

for the six months to 30 June 2014

For the six months
to 30 June 2014
(unaudited)

                               Share
                       Share premium Redemption Capital Special Revenue
                     capital reserve    reserve reserve reserve reserve   Total
                        £000    £000       £000    £000    £000    £000    £000

Balance at

1 January 2014           171   6,884         88  11,439   7,472   2,399  28,453

Return on ordinary
activities

after taxation             -       -          -   6,094       -   1,177   7,271

Dividends paid             -       -          -       -       - (1,348) (1,348)

Balance at 30 June       171   6,884         88  17,533   7,472   2,228  34,376
2014

For the six months
to 30 June 2013
(unaudited)

                               Share
                       Share premium Redemption Capital Special Revenue
                     capital reserve    reserve reserve reserve reserve   Total
                        £000    £000       £000    £000    £000    £000    £000

Balance at

1 January 2013           171   6,884         88   2,002   7,472   2,390  19,007

Return on ordinary
activities

after taxation             -       -          -   8,313       -   1,322   9,635

Dividends paid             -       -          -       -       - (1,007) (1,007)

Balance at 30 June       171   6,884         88  10,315   7,472   2,705  27,635
2013

For the year ended
31 December 2013
(audited)

                               Share
                       Share premium Redemption Capital Special Revenue
                     capital reserve    reserve reserve reserve reserve   Total
                        £000    £000       £000    £000    £000    £000    £000

Balance at

1 January 2013           171   6,884         88   2,002   7,472   2,390  19,007

Return on ordinary
activities

after taxation             -       -          -   9,437       -   1,921  11,358

Dividends paid             -       -          -       -       - (1,912) (1,912)

Balance at

31 December 2013         171   6,884         88  11,439   7,472   2,399  28,453


Cashflow Statement

for the six months to 30 June 2014

                                     (Unaudited)    (Unaudited)      (Audited)
                                   Six months to  Six months to     Year ended
                                         30 June        30 June    31 December

                                            2014           2013           2013

                   Notes                    £000           £000           £000

Net cash inflow    7                         929            962          1,676
from operating
activities

Taxation

Overseas tax paid                          (135)           (38)          (105)

Financial
investments

Purchases of                            (19,044)       (16,802)       (25,929)
investments

Sales of                                  19,355         16,239         26,319
investments

Net cash inflow/                             311          (563)            390
(outflow) from
financial
investments

Equity dividends                         (1,348)        (1,007)        (1,912)
paid

Net cash (outflow)                         (243)          (646)             49
/inflow before
financing

(Decrease)/                                (243)          (646)             49
increase in cash


Reconciliation of Net Cash Flow to Movements in Net Debt

                              (Unaudited)        (Unaudited)          (Audited)
                            Six months to      Six months to         Year ended
                                  30 June            30 June        31 December
                                     2014               2013               2013
                                     £000               £000               £000

(Decrease)/increase in              (243)              (646)                 49
cash as above

Net change in debt due            (1,284)            (1,192)            (2,471)
in more than one year

Movements in net debt             (1.527)            (1,838)            (2,422)
for year

Net debt as at 1                 (40,007)           (37,585)           (37,585)
January

Net debt as at end of            (41,534)           (39,423)           (40,007)
period


Notes to the Half Year Report

ACCOUNTING POLICIES

1. These financial statements have been prepared in accordance with applicable
United Kingdom Accounting Standards and with the Statement of Recommended
Practice "Financial Statements of Investment Trust Companies and Venture
Capital Trusts" (issued in January 2009). The accounting policies applied to
this half year report are consistent with those applied in the accounts for the
year ended 31 December 2013.

The accounts have been prepared on a going concern basis.

2. The figures and financial information for the year ended 31 December 2013
are an extract from the latest published accounts and do not constitute
statutory accounts. Full accounts for that period have been delivered to the
Registrar of Companies and included the report of the auditors which was
unqualified and did not contain a statement under section 498 of the Companies
Act 2006. The accounts for the six months ended 30 June 2014 and for the six
months ended 30 June 2013 are unaudited and do not constitute statutory
accounts.

3. On 24 July 2014 the Directors declared a second interim dividend of 2.65p
per Ordinary share comprised of a base dividend of 1.9p and an additional
dividend of 0.75p for the year ending 31 December 2014 to holders of Ordinary
shares on the register on 29 August 2014. The Ordinary shares will be marked
ex-dividend on 27 August 2014 and the dividend will be paid on 30 September
2014.

4. The total return per Ordinary share is based on the return on ordinary
activities after taxation of £7,271,000 (six months ended 30 June 2013: £
9,635,000; year ended 31 December 2013: £11,358,000) and on 17,068,480 Ordinary
shares in issue during the six months ended 30 June 2014 (six months ended 30 
June 2013: 17,068,480 shares; year ended 31 December 2013: 17,068,480 shares).

5. The Net Asset Value differences reported below arise from the treatment of
the premium (net of expenses) from the issue of Zero Dividend Preference
("ZDP") shares in December 2011 of £330,000. In accordance with UK Accounting
Standards this has been included with the ZDP liability and is being amortised
over the life of the Company. In accordance with the Articles of Association
the premium has been included with shareholders equity and the ZDP liability
reflects their accrued capital entitlement at 30 June 2014 and 31 December
2013.

The net asset value per share and the net assets available to each class of
share calculated in accordance with UK Accounting Standards, are as follows:

                Net asset value      Net assets Net asset value      Net assets
                      per share       available       per share       available
                        30 June         30 June     31 December     31 December
                           2014            2014            2013            2013
                          Pence            £000           Pence            £000

17,068,480
Ordinary shares
of £0.01 each

in issue                 201.41          34,376          166.70          28,453

21,180,373 Zero
Dividend
Preference
shares

of £0.01 each            202.17          42,820          196.11          41,536
in issue*

* Classified as a liability.

The net asset value per share and the net assets available to each class of
share calculated in accordance with the Articles of Association, are as
follows:

                Net asset value      Net assets Net asset value      Net assets
                      per share       available       per share       available
                        30 June         30 June     31 December     31 December
                           2014            2014            2013            2013
                          Pence            £000           Pence            £000

17,068,480
Ordinary shares
of £0.01 each

in issue                 202.05          34,486          167.55          28,598

21,180,373 Zero
Dividend
Preference
shares

of £0.01 each            201.65          42,710          195.42          41,391
in issue*

* Classified as a liability.

6. The taxation charge of £137,000 (30 June 2013: £78,000 and 31 December 2013:
£155,000) relates to irrecoverable overseas taxation.

7. Reconciliation of total return on ordinary activities before finance costs
and taxation to net cash inflow from operating activities:

                            (Unaudited)         (Unaudited)           (Audited)
                          Six months to       Six months to          Year ended
                                30 June             30 June         31 December
                                   2014                2013                2013
                                   £000                £000                £000

Total return on
ordinary activities
before

finance costs and                 8,692              10,905              13,984
taxation

Capital return                  (7,378)             (9,505)            (11,908)
before finance
costs and taxation

Accrued income and                (226)               (253)                  15
prepayments

Other creditors                      67                  13                (17)

Investment                        (226)               (198)               (398)
management fee
capitalised

Net cash inflow                     929                 962               1,676
from operating
activities

8. Investment management fee charged by Premier Fund Managers Limited.

                                    (Unaudited)     (Unaudited)       (Audited)
                                  Six months to   Six months to      Year ended
                                        30 June         30 June     31 December
                                           2014            2013            2013
                                           £000            £000            £000

Basic fee:      40% charged to              148             132             268
                revenue

                60% charged to              226             198             398
                capital

                                            374             330             666

9. It is the intention of the Directors to conduct the affairs of the Company
so that they satisfy the conditions for approval as an investment trust company
set out in section 1158 of the Income and Corporation Tax Act 2010.

Interim Management Report

Premier Energy and Water Trust PLC is required to make the following
disclosures in its half year report:

PRINCIPAL RISKS AND UNCERTAINTIES

The Board believes that the principal risks and uncertainties faced by the
Company continue to fall into the following categories:

• Structure of the Company and gearing

• Discount volatility

• Dividend levels

• Operational

• Currency risk

• Accounting, legal and regulatory

• Liquidity risk

• Political and regulatory

• Market price risk

Information on each of these is given in the Report of the Directors in the
Annual Report for the year ended 31 December 2013.

RELATED PARTY TRANSACTIONS

There have been no related party transactions during the six months ended 30
June 2014.

GOING CONCERN

The Directors believe, having considered the Company's investment objectives,
risk management policies, capital management policies and procedures, nature of
the portfolio and income and expenditure projections, that the Company has
adequate resources, an appropriate financial structure and suitable management
arrangements in place to continue in operational existence for the foreseeable
future. For these reasons, they consider there is reasonable evidence to
continue to adopt the going concern basis in preparing the accounts.

DIRECTORS' RESPONSIBILITY STATEMENT

The Directors are responsible for preparing the half year report, in accordance
with applicable law and regulations. The Directors confirm that, to the best of
their knowledge:

•

The condensed set of financial statements within the half year report has been
prepared in accordance with the Accounting Standards Board's statement
"Half-Yearly Financial Reports"; and

•

The Interim Management Report includes a fair review of the information
required by 4.2.7R (indication of important events during the first six months
of the year) and 4.2.8R (disclosure of related party transactions and changes
therein) of the FCA's Disclosure and Transparency Rules.

For and on behalf of the Board.

Geoffrey Burns
Chairman
6 August 2014


Shareholder Information

SHARE PRICE AND PERFORMANCE INFORMATION

The Ordinary shares and Zero Dividend Preference shares are listed on the
London Stock Exchange. Information about the Company and that of the other
investment company managed by Premier, the Acorn Income Fund Limited, including
current share prices can be obtained directly from:

www.premierfunds.co.uk

Contact Premier on 01483 306090, or by e-mail to premier@premierfunds.co.uk.

SHARE DEALING

Shares can be purchased through a stockbroker.

Information on the Premier ISA can be obtained by contacting Premier on 01483
306090.

SHARE REGISTER ENQUIRIES

The register for the Ordinary shares and Zero Dividend Preference shares is
maintained by Capita Registrars. In the event of queries regarding your
holding, please contact the Registrar on 0871 664 0300 (calls cost 10p per
minute plus network extras, lines are open Monday to Friday 9.00 a.m. to 5.30
p.m.); overseas +44 208 639 3399; or e-mail ssd@capitaregistrars.com. Changes
of name and/or address must be notified in writing to the Registrar.

STATEMENT REGARDING NON-MAINSTREAM INVESTMENT PRODUCTS

The Company currently conducts its affairs so that both the Ordinary Shares and
Zero Dividend Preference Shares issued by the Company can be recommended by
IFAs to retail investors in accordance with the FCA's rules in relation to
non-mainstream investment products and intends to continue to do so for the
foreseeable future.

Premier Energy and Water Trust's shares fall outside the restrictions which
apply to non-mainstream investment products because Premier Energy and Water
Trust is an investment trust.

A member of the Association of Investment Companies.

Directors and Advisers

DIRECTORS

Geoffrey Burns (Chairman)
Ian Graham
Michael Wigley
Charles Wilkinson

INVESTMENT MANAGER

Premier Fund Managers Limited
Eastgate Court High Street Guildford Surrey GU1 3DE
Telephone: 01483 306 090
www.premierfunds.co.uk

Authorised and regulated by the
Financial Conduct Authority
SECRETARY AND REGISTERED OFFICE

Premier Asset Management Limited
Eastgate Court
High Street
Guildford
Surrey GU1 3DE

Telephone: Mike Nokes 0207 982 1260

COMPANY NUMBER

4897881

WEBSITE

www.premierfunds.co.uk

REGISTRAR

Capita Asset Services
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Telephone: 0871 664 0300
Overseas: +44 208 639 3399
E-mail: ssd@capitaregistrars.com

AUDITOR

Ernst & Young LLP
1 More London Place
London SE1 2AF

STOCKBROKER

N+1 Singer Advisory LLP
One Bartholomew Lane
London EC2N 2AX
Telephone: 0207 496 3000

ORDINARY SHARES

SEDOL 3353790GB

LSE PEW.L

ZDP SHARES

SEDOL 3353820GB

LSE PEWZ.L

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